1. Purpose

The Minister of Industry, through the Department of Industry Act, the Radiocommunication
Act and the Radiocommunication Regulations, with due regard to the objectives of the Telecommunications Act, is
responsible for spectrum management in Canada. As such, the Minister oversees the development of
national policies and goals for spectrum resource use and ensures effective management of the radio
frequency spectrum.

2. Intent

This document provides radiocommunication service provider licensees and potential licensees with
information on system licensing and how it applies to radio licences issued to service providers and their
subscribers, with particular attention to the concept of high, medium and low congestion zones. System
licensing applies to both land mobile systems (two-way radiocommunication) and to paging systems (one-way
radiocommunication).

3. Background

Industry Canada is continually reviewing the radio regulatory and licensing fee structure with a view to
improving service to the public and to reducing the costs associated with managing the radio frequency
spectrum. It is also incumbent upon the Department to ensure that it maintains its ability to manage the
radio frequency spectrum effectively.

After a careful review of the radiocommunication service provider regulatory and operational
environment, the Department decided that the above-noted objectives could be accomplished by
instituting system licensing. The application of system licensing means that, subject to certain criteria
listed below, the vast majority of radiocommunication service provider subscribers will not require a
separate radio station licence. In most cases, only the radiocommunication service provider's repeater
station or paging terminal will require a licence.

4. System Licensing Eligibility Criteria

4.1 Zones Applicable to System Licensing for Radiocommunication Service Providers

For the sake of brevity, only general descriptions of the zones are provided below. If more accurate
information is required as to which zone any proposed or existing station is located in, refer to the maps
contained in Annex A of this document, to the nearest district office of Industry Canada, or to the Radiocommunication Regulations, Schedules V and VI. In any event, the Department's spectrum
management system will ensure that the correct zone and resultant fee calculations are reflected in the
applicable radio station licence.

The metropolitan zones defined in the current fee structure for radiocommunication service provider
stations have been replaced by a three-zone concept based on the level of frequency utilization. These
zones are as follows:

High Congestion Zones

There are six metropolitan areas of Canada designated as zones of intense frequency use. They are in
and/or around the following cities:

Calgary, Edmonton, Montréal, Toronto, Vancouver and Victoria.

Medium Congestion Zones

There are 21 areas of Canada designated as zones of moderate frequency usage. These zones can be
either stand-alone areas or areas that are adjacent to the six intense frequency use zones listed above.
These moderate zones are as follows:

Note: Should a radiocommunication service provider station covered by the guidelines of Section 4.1
be located on one of the lines of latitude and longitude separating the zones, it will be
considered to be located in the less congested zone for the purpose of fee calculations.

4.2 Radiocommunication Service Provider System Licensing Fees

4.2.1 Land Mobile Systems

Fixed land mobile service stations authorized to use frequencies in the band 30-960MHz and that
communicate with subscriber stations are covered by system licensing. Fees are payable for each
transmit and receive frequency installed in each fixed land mobile station and depending on their
location within one of the above-mentioned congestion zones. Radiocommunication Information
Circular RIC-42, Guide for Calculating Radio Licence Fees, provides the information as to how
to
calculate radio licence fees for radiocommunication systems operating in the land mobile radio
frequency bands.

4.2.2 Paging Systems (One-way Radiocommunication)

Fixed stations, authorized to perform paging service on frequencies in the range 30-960 MHz, are
covered by system licensing. Fees are payable for each frequency installed in each terminal radio station
and depending on the station location within one of the above-mentioned congestion zones. RIC-42 provides
the information as to how to calculate radio licence fees for radiocommunication systems
operating in the land mobile radio frequency bands.

4.3 System Licensing Criteria for Radiocommunication Service Provider Subscriber Stations

Subscriber stations communicating with land mobile service stations authorized to perform a
radiocommunication service using frequencies in the range 30-960 MHz (except for maritime mobile
frequencies) are covered by system licensing. Note that in areas where 30-960 MHz non-aeronautical
mobile stations are permitted in aircraft, these stations are excluded from the application of system
licensing.

It is a term and condition of a radiocommunication service provider's licence that a subscriber to the
services (i.e. a lessee of radio apparatus that the radiocommunication service provider may install)
operates or possesses radio apparatus to communicate with other radio apparatus to which that licence
applies. Use of the services or radio apparatus of a radiocommunication service provider is restricted to
communications with radio apparatus to which the radio licence applies.

4.3.1 Land Mobile Systems

Subscriber Mobile Stations — a separate radio station licence is required if the mobile station is:

(a) operating in the 30-50 MHz range with an effective radiated power (e.r.p.) of more than 60 watts
(equivalent to a maximum field strength of 5.4 V/m measured at a distance of 10 metres); or

(b) operating in the 50-960 MHz range with an e.r.p. of more than 30 watts (equivalent to a maximum
field strength of 3.8 V/m measured at a distance of 10 metres).

(c) utilizing frequencies assigned to an associated radiocommunication service provider, including “talk-around” frequencies, beyond the service provider’s
licensed service area; or

(d) utilizing frequencies not assigned to its associated radiocommunication service provider.

Subscriber Base Stations (also called fixed or control stations) — a separate radio station licence is
required if the station is:

(a) utilizing an internal antenna installation (i.e. an antenna located within a building) with an e.r.p. of
more than 30 watts (equivalent to a maximum field strength of 3.8 V/m measured at a distance of
10 metres); or

(b) utilizing an external antenna installation (i.e. an antenna affixed to the exterior of a building), with a
maximum height above ground level of 13.5 metres, and an e.r.p. of more than 10 watts (equivalent
to a maximum field strength of 2.2 V/m measured at a distance of 10 metres).

Antenna heights greater than 13.5 metres, to a maximum of 30 metres above ground level, require e.r.p. (field strength) reductions of an order outlined in Annex
B, which provides examples of various antenna
heights with the associated maximum e.r.p. permitted.

4.3.2 Subscriber Station Operating Standards

To be eligible for system licensing, the radio equipment used by a subscriber must be issued a technical
acceptance certificate (TAC) as outlined in the Radio Standards Procedure RSP-100,
Radio Equipment
Certification Procedure. This document specifies the procedural requirements and information to be
submitted by an applicant wishing to obtain certification of radio equipment by the Certification and
Engineering Bureau of Industry Canada.

4.3.3 Non-SystemLicensed-Subscriber Stations

Any subscriber base or mobile station not meeting the above criteria must be issued a radio licence. The
licensee will be charged radio licence fees specified in the Radiocommunication
Regulations.

Non-system-licensed subscriber base and mobile station licensees using additional frequencies will be
charged for those additional frequencies as per the Radiocommunication
Regulations, whether the
radiocommunication service provider frequencies are covered or not by system-licensing.

4.3.4 Paging Systems (One-way Radiocommunication)

5. Responsibilities of the Radiocommunication Service Provider Licensees

5.1 System Loading

The Department may, from time to time, require radiocommunication service provider licensees to
submit appropriate information on the degree of utilization of their assigned radio frequencies. For land
mobile operations, this may include a list of subscribers along with the number of fixed and mobile
stations used by each subscriber.

5.2 Subscriber Compliance

Radiocommunication service provider licensees should ensure that their system-licensed subscriber
stations meet the parameters outlined in this document.